A Tough Battle, Part 1
“First, thank you for your quick decision, Professor.”
“No, it’s an opportunity I can’t afford to miss. I’m the one who should be grateful for the chance.”
Professor Shashua showed up well past dinner time. Despite the late hour, it seemed he couldn’t wait another night, revealing the urgency of his thoughts.
The lobby lounge was quiet, as most guests were enjoying a drink at the bar.
“I’m curious about your response to my proposal.”
Professor Shashua pulled a neatly folded piece of paper from his jacket pocket.
“This outlines the initial startup costs. I’ve also jotted down a brief proposal for the equity structure.”
I almost laughed when I saw the numbers on the paper.
The figures gave me a clear idea of the scale of Cognitance, founded back in ‘95.
The difference from our country’s venture firms was stark.
While our ventures often show signs of scrambling to gather as much funding as possible, this single sheet of paper reflected a careful consideration of how to save money.
The proposed costs were minimal, almost laughably small to me.
I folded the paper and placed it quietly on the table.
“Professor, there’s something more important than money. May I speak freely?”
“Of course.”
“Do you truly believe your research will become a reality?”
“Yes, I do.”
Professor Shashua nodded with confidence, showing no trace of pretense.
With his self-assurance and the essentials in place, it seemed time to move to the next step.
“How will the collaboration with the technology center work? It says here that 3.7% of the equity goes to the university’s tech center…?”
“Ah, that’s mainly to cover the costs of the equipment and labs provided by the school. It also includes miscellaneous things like library books.”
Seeing my sensitivity to the equity, Professor Shashua elaborated on the school’s involvement.
“Our university spares no support for startups. Even though the research might not yield significant results, they’ve already provided over $200,000 worth of equipment. So, 3.7% isn’t much.”
“Oh, don’t misunderstand. I’m not blaming the school. I just wanted to understand the scale of their support.”
Of course, that’s not all.
“The first round of funding needed to achieve meaningful results is $700,000, and $1.5 million is required until commercialization. Is that correct?”
“Yes.”
Professor Shashua watched my lips, perhaps worried I might think it was too much.
“And Miracle’s share is 35%.”
“Is that insufficient?”
“No, it’s reasonable. I mean it.”
Professor Shashua relaxed, smiling brightly, believing the deal was sealed.
But it’s always best to reject the first offer, whether it’s reasonable or not.
“Professor.”
“Yes.”
“Let me share my thoughts. They might seem irrational, but please hear me out.”
“Ah, yes.”
Seeing the smile fade from the professor’s face, I spoke slowly.
“I’ll give $400,000 to the university’s tech center. And I’ll leave the equipment provided by the school as their property. This way, we owe nothing to the school, so there’s no need to give them 3.7% equity, right? Or should we give more?”
He shook his head, unable to speak. The more radical the second proposal, the more effective it is. Just like Professor Shashua seemed shocked now.
“And I’ll raise the first round of funding to $7 million. Get all the advanced equipment you need and gather as much talent as necessary, even if they’re Ph.D. level from MIT.”
“Mr. Jin!”
When the second shock hits before the first one fades, people tend to stutter like this.
“We’ll decide on the second round of funding for commercialization later. Don’t misunderstand. It’s not that I won’t use the $1.5 million you mentioned, but we might need $15 million or more, so I’m postponing the decision.”
He might think I’m crazy. He might think this investment is a fool’s errand.
Ten times the necessary amount. And that’s not all. He must have sensed I was ready to throw in ten, no, a hundred times the desired amount.
There’s only one scenario for this.
Either the market has already recognized its potential for success, or it’s the right time to expand an already successful business.
But Professor Shashua is only at the first line of Chapter 1, so to speak. Whether this story will be completed or sell well, no one knows.
However, I’m not crazy.
If Professor Shashua starts a business with this item, a sharp-eyed Russian investor will soon swoop in with $10 million to secure a significant stake.
If I make my move now, there won’t be room for anyone else to join the table.
“Mr. Jin, honestly, this is an unbelievable offer. I did set a tight budget, but ten times the amount…”
“I haven’t finished my story yet.”
Professor Shashua seemed to have more to say, but I stopped him.
“Instead, I’d like to set Miracle’s share at 60%.”
As soon as I mentioned 60%, the professor’s face crumpled, but my proposal wasn’t over yet.
“I’ll only hold it. All voting rights will be yours, and I won’t interfere in management. I won’t even send an auditor, so you won’t need to submit any separate reports on how you use the investment. Just focus on business success.”
I clasped my hands together, signaling the end of my pitch. Now it was time to hear Professor Shashua’s final answer.
But he couldn’t speak. He just blinked, staring at my face.
“Professor?”
“Oh, my apologies. This is the most outrageous investment condition I’ve ever heard… It’s almost like gambling, isn’t it?”
His eyes showed disbelief, as if he found it all too absurd.
“When your first card is an ace, you have enough chips to go all-in.”
Whether he was being cautious or skeptical, he still couldn’t accept it.
“By the way, I’m also considering investing in Cognitance. Would $1 million be sufficient? I’ll match the equity to the current capital ratio.”
I decided to change the subject rather than continue explaining.
“$1 million would mean 80% of Cognitance’s equity. That’s a bit difficult.”
“Then let’s make it 50, no, 49%. The other conditions will be the same as I’ve already mentioned.”
I set down my coffee cup. There was nothing more to say.
“You’ll need to think it over. If you accept my terms, I’ll have the investment contract ready by tomorrow. Once you review and sign it, I’ll deposit the full investment amount into the designated account.”
Realizing the conversation was over, Professor Shashua set down his coffee cup and stood up.
“I’ve heard your bold proposal. I never imagined I’d be contemplating such favorable terms, but here we are.”
“When you win the lottery, it’s hard to believe. The higher the prize, the more so.”
I extended my hand for a handshake.
“I have no doubt that your research will be my lottery ticket. Ha ha.”
Perhaps because he had already made a lot of money, Oh Se-hyun didn’t pry into the details.
He simply said, “If it’s under $10 million, you did well.”
I shared the broad strokes of the investment terms and ended the call.
Once Miracle sends the contract via email, my work here is done.
This will be a long-term investment. I only hope that by utilizing Professor Shashua’s Advanced Driver Assistance Systems (ADAS), we can increase Ajin Motors’ market share in Korea and prevent our cars from lagging behind in advanced systems overseas.
Just as no one dislikes winning the lottery, Professor Shashua rushed to the hotel the next morning.
“God told me not to miss this miraculous opportunity.”
True to his Jewish roots, he mentioned divine intervention. I chuckled and teased him.
“Did God really speak to you? Or was it the result of cold, rational calculation?”
“Actually, as a scientist, precise calculation comes first. Ha ha.”
I handed him the investment contract with a bright smile.
“Here’s the draft of the contract.”
After thoroughly reading the contract, Professor Shashua looked pleased.
“It’s straightforward, which I like. But I’d like to have my lawyer review it once more.”
“Of course, you should. And I’ve left the company name blank for you to fill in.”
“Oh, I’ve been thinking about the company name. I’ve decided on ‘Mobileye.’ What do you think?”
So far, nothing has changed.
The name remains the same.
“That’s excellent. It clearly conveys your vision.”
I shook his hand with a joyful heart.
I’ve secured a solid insurance policy worth over $10 billion.
Whether I’ll cash it in for a big payout when it matures or use it for something else remains to be seen.
Upon returning to Korea, the person waiting for me wasn’t Oh Se-hyun.
He was busy merging Daeah Construction with the HW Group and had no interest in what I had been doing in Israel.
Instead, I headed straight to my grandfather’s study from the airport.
“Why did you go to such a dangerous place, you rascal?”
My grandfather’s eyes were filled with worry and anger.
“It’s quite safe these days. It’s not always a war zone.”
Seeing me safe, my grandfather sighed with relief.
“I held back from calling you. I didn’t want to disturb your work.”
“You could have called. I just went to get some fresh air.”
“Fresh air? All the way on the other side of the world? I won’t ask what you were really up to, so spare me the nonsense.”
My grandfather chuckled, returning to his usual self.
“But that’s not why I urgently wanted to see you.”
Just then, my aunt and uncle peeked through the study door.
“Oh, Do-jun, you’re here too?”
My aunt smiled brightly, patting my shoulder.
“Everyone, take a seat. I have something to tell you.”
My grandfather had summoned us all, likely because of the upcoming local elections.
“Mr. Choi.”
“Yes, Father-in-law.”
“There’s no issue with your nomination for Seoul mayor, right?”
“That’s correct. Since we’ve fallen to the opposition and the previous government’s popularity has plummeted, no one’s stepping up to challenge me. Everything’s going smoothly.”
With the first step toward becoming the mayor of Seoul underway, it was only natural that both men wore satisfied expressions.
“I hate to rain on your parade, but there’s something you should know. It seems the ruling party has decided on Go Kyung-yeol as their candidate for Seoul mayor.”
I was the only one in the room whose face remained unchanged.
Go Kyung-yeol, the ruling party candidate who won the Seoul mayoral race in the second nationwide local elections. Of course, that was in a past life.
He’s a bureaucrat with no party affiliation, and a highly respected administrator at that. By recruiting someone free from political bias, the ruling party has presented a formidable opponent for the opposition.
My uncle’s face had already turned ashen, and my aunt was biting her lip.
“Heh, Do-jun, looks like you might have wasted your money.”
“More importantly, Grandpa, how did you know about this before it hit the news?”
“How do you think? Go Kyung-yeol called me this morning to pay his respects. He asked what he should do since the ruling party wants to recruit him.”
“What? Why would he seek your permission?”
“Because he climbed to that position with my money, and now he’s going up against my son-in-law. Of course, he needs my blessing. He probably wanted to hear that I wouldn’t interfere. Ha ha.”
That laugh.
Grandpa is clearly enjoying this situation.